Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions
JJ Enterprises currently manufactures two products, A and B. It is considering adding a new product, Product C. The following table shows current information for products A and B, as well as projected data for Product C.
*NOTE: If Product C is produced, one-fourth of the company's common costs, which are fixed costs, will be allocated to Product C, with one-half and one-fourth allocated to products A and B, respectively.
-If JJ Enterprises adds Product C,the total incremental cost will be:

A) $740,000
B) $330,000
C) $137,500
D) $130,000